The notes are being offered through an agency syndicate consisting of Scotia Capital Inc. and BMO Nesbitt Burns Inc. as co-lead private placement agents, and including CIBC World Markets Inc., National Bank Financial Inc. and TD Securities Inc.

The offering is expected to close next Monday, subject to customary closing conditions.

Sobeys plans to use net proceeds of the offering to repay outstanding debt under its existing non-revolving, amortizing term credit facility.

Following Sobeys’ acquisition of the Canada Safeway business on Nov. 4, the amount outstanding under the credit facility was $1.825 billion.

The current amount outstanding on the facility is $1.325 billion, which is expected to drop to about $1.025 billion as a result of the note offering.

A subsidiary of Empire Company Ltd. of Stellarton, Sobeys owns or franchises about 1,500 stores across Canada under retail banners that include Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods, and Lawtons Drugs.